Metro Birmingham home prices declined 2.6 percent in October from the year-ago period, mortgage research firm First American CoreLogic said today.

First American CoreLogic said home prices in the area slipped in October, but the rate of decline was less than in the previous month The number includes sales of distressed properties. Excluding those sales, the area's home prices fell 2.49 percent from October 2008.

The rate of decline is slowing, however. In September, home prices, including distressed sales, fell 4.2 percent from the year-ago period.

Over the next year, First American CoreLogic predicts that the Birmingham area's home prices, including distressed sales, will appreciate by 1.29 percent.

Nationally, home prices, including distressed sales, dropped 7.8 percent in October compared to October 2008. Across Alabama, home prices, including distressed sales, fell by 5.9 percent from the previous year.